Unsure how to start with the confusing and overwhelming BIR registration procedure? Worry no more. Our comprehensive 12-step BIR registration guide for doctors/physicians will run you through all that you need to know about tax filing and payment. But not just that, but a more convenient yet less time-consuming guide for you as a doctor/physician.
BIR registration can be a daunting process, so much so as a doctor/physician with overwhelming obligations. Considering the heavy demands of your profession, familial duties, and outside commitments, you have to improvise to keep up with your duty as a citizen. Furthermore, addeto that complication are the overwhelming procedures and inconsistent documentary requirements imposed by some BIR Revenue District Offices (RDOs). And this can be confusing for you, as a taxpayer. Nevertheless, registering your profession is necessary. More so, by registering, you get to fully benefit from self-employment in ways other than what you initially intended.
For this reason, we will run you through a detailed and comprehensive guide to assist you on how to register with BIR as a doctor/physician. This guide is applicable to all self-employed and mixed-employed doctors/physicians wanting to register with BIR. Other professionals and self-employed individuals can refer to this guide as well. Read on!
Before you proceed with our 12-step guide on getting your practice registered with the BIR, let’s get you up-to-date on the requirements you’ll need to have on-hand.
What are the things I need to prepare?
As a doctor/physician, regardless of which type of taxpayer you fall under, prepare to bring all these general registration requirements:
General Registration Requirements
- NSO Birth Certificate or any other government-issued valid ID that shows your name, address, and birth date (Original and Photocopy)
- BIR Form No. 1901 (3 copies)
- BIR Form No. 1906 (3 copies)
- Final & clear sample of Principal Receipts and Invoices
- BIR Form 0605 (4 copies)
- Proof of Payment from BIR Form 0605 (original and photocopy)
- Proof of Address
- PRC license/ID
- Payment of Professional Tax Receipt
- Tax Identification Number (TIN)
- Patience (lots of it)
Additional Documentary Requirements (Subject to Which Taxpayer You Fall Under)
BIR requires additional documentary requirements subject to which type of income earner you fall under as a physician/doctor.
Doctors / Physicians may be classified under the following taxpayer types:
- Employed individuals are those who derive their income by performing activities or rendering services necessary for the business of their employer. Fundamentally, resident and government doctors are often classified as employed. And for the most part, lucky them, residents and government doctors need not go through the BIR registration process, as their employer (government/hospital) takes charge of doing it on their behalf.
- Self-Employed Individuals, as defined by BIR, are 1) people who own a business and derive income from such business, 2) people who make a living through their art, or 3) professionals who earn by practicing their profession and are registered with the PRC. That being said, all physicians who started private practice are considered self-employed by BIR, for they fall under the professional category.
- Mixed-Income Earners fall under any two of the following: Professionals, Single Proprietors, and Local Employees. They may be privately employed, but they may also have their own business or offer a professional service.
What else do I need to take note of?
Know your BIR Revenue District Office (RDO)
A mistake often committed by self-employed and mixed income earner physicians is failing to check if their TIN is in the correct BIR Revenue District Office (RDO). The correct RDO, as it happens, is the place where you conducted/will conduct your business/professional service. So it really is not the place where you used to work or where you obtained your TIN ID. If it is not in the right place, you have to apply for a transfer of TIN.
To illustrate this better, say for instance you work in Quezon City. So your TIN number would be in RDO-038. However, you are conducting/will be conducting your business/professional service in Taguig City (RDO-044). Such an instance calls for a TIN transfer, in this case, from RDO-38 to RDO-044. For more details on how to apply for a TIN transfer, refer to the 12-step guide below.
Obtain Your Professional Tax Receipt
One general requirement for doctors applying for a registration with BIR is a Professional Tax Receipt (PTR). Fundamentally, PTRs are available from the Treasury Department of the City Hall where you live. To get a PTR, simply present your PRC license and pay for the corresponding fee, which ranges from P300-P500. Fees may vary depending on the location of the Local Government Unit (LGU) where you are going to obtain your PTR.
Secure BIR Forms
One way to get secure a BIR form is, certainly, to go to a BIR RDO. But to help you save time, you can secure downloadable forms online. The links to which you can access below. Refer to these as you proceed with the 12-step registration process.
TYPE OF FORM
|BIR Form No. 0605||payment form|
|BIR Form No. 1901 (page 1 and page 2 )||Application for Registration for Self-Employed and Mixed Income Individuals|
|BIR Form No. 1906||Application for Authority to Print Receipts and Invoices|
|BIR Form No. 1905||Application for transfer of TIN, registration cancellation, new copy of Certificate of Registration, new copy of TIN card|
NOTE: Make sure that you set the forms in legal size (8.5” x 14”) when you have it printed. BIR only authorizes electronically generated forms provided that they are set in the prescribed format, that is, legal size. Do otherwise and the attending officer won’t accept the form.
And finally, here’s the 12-Step BIR Registration Guide for Doctors / Physicians:
STEP #1: TIN Registration/TIN Update
a. For doctors/physicians who have no prior experience working/not registered with the BIR
You are required to obtain a Tax Identification Number (TIN). BIR offers an eRegistration system for TIN issuance. Visit the link for BIR eRegistration, fill out all pertinent taxpayer information, and confirm your email. Doing so will automatically register you as self-employed.
NOTE: Your electronic TIN will be sent to your email. Having multiple TIN is against the law. So if you are unsure if you have an existing TIN, just call BIR’s hotline number (02) 981 8888. You can also visit any BIR branch near you.
b. For doctors/physicians who were employed, and want to transition from being employed to self-employed
You must update your TIN and apply for a TIN transfer. To do this, you must submit to your prevailing RDO /RDO of your previous employer 1) 3 copies of duly filled Form 1905 and 2) 3 copies of duly filled BIR Form 1901. Your employer was the one who enrolled you, or got the TIN on your behalf, so your records are on his/her RDO. Submit these forms together with your 3) Professional Tax Receipt, 4) DTI Certificate, 5) Mayor’s business Permit, 6) Contract of Lease, 7) NSO Birth Certificate, and 8) Marriage Contract (if married).
The processing of TIN transfer typically takes 5 working days. And in times like these, follow-up questions are anticipated. So don’t forget to ask for the officer’s contact number before proceeding to your new RDO.
NOTE: As has been noted, you can obtain a copy of the BIR forms at any RDO, but you can also download them online. For downloadable copies, refer to the links above. To reiterate, do not forget to set the forms in legal size.
STEP #2: Submission of Requirements
Go to your designated RDO for the verification of taxpayer information and the submission of the BIR forms and the documentary requirements specified above.
STEP #3: Stamping of BIR Form 0605
After submitting, the officer-in-charge will ask you to pay for the annual registration fee. But before that, you must get your copies of duly-filled BIR Form 0605 stamped by a BIR attendant.
STEP #4: Payment of Registration fee
After this, present your stamped copies of BIR Form 0605 (4 copies) to a BIR-authorized agent bank. Professionals and mixed-income earners are required to pay a P500 registration fee, so prepare to pay for this fee to the bank. Refer to this for a list of BIR-authorized agent banks.
NOTE: Do not misplace your official receipt as it would serve as your proof of payment. Obtain 2 photocopies of the the receipt as well. Moreover, you need to secure 2 photocopies of the stamped BIR form 0605 given back to you by the bank. You will need these two later.
STEP 5: Presenting your Proof of Payment
Go back to the RDO to present your proof of payment. Submit your photocopies of the official receipt and the BIR Form 0605 given back to you by the bank.
STEP #6: Getting your ATP (Authority To Print) Receipts/Invoices
Fill in your 3 copies of BIR form 1906 for the application for Authority to Print Invoices/Receipts. Submit to the attending officer.
STEP #7: Additional Step for Mixed Income Earners
If it is the case that you are a mixed income earner, you will have to secure 2 columnar books and have them stamped by the guard at the RDO entrance. Do this before proceeding to write all necessary information.
STEP 8: Getting Your Books of Account
Afterwards, secure and fill in 4 Books of Accounts (journal, ledger, cash receipts, and cash disbursement), which you can purchase for P200 at the RDO.
STEP 9: Finding an Authorized Company to Print Receipts
Next, you will be asked to proceed to an authorized printing press outside BIR to print out the receipt booklets. The printing press typically charges 1,000-P1,500 for the receipt booklets. After securing your booklets of receipt and ledger, go back to the RDO and have it stamped by an attendant.
NOTE: As for the processing of receipts by the printing press, it normally takes 1-2 weeks. It may take you longer or shorter depending on the volume of the applicants. For the meantime, ask the printing press to give you a sample receipt under your name.
STEP #10: Latest Additional Step: The Taxpayer’s Initial Briefing
Meanwhile, your designated RDO will schedule a taxpayer’s briefing for you to know your rights and obligations. The seminar often takes place once a week. Make sure that you show up. Your attendance is required before they release your Certificate of Registration (COR) or BIR Form 2303.
NOTE: Do not fall prey. Take whatever freebie they give you (e.g. calendar). Apparently, later on, it would serve as their proof that you truly attended the seminar.
STEP #11: Obtaining your Certificate of Registration (COR) or BIR Form 2303
Go back to the printing press to get your printed receipts, and proceed to the RDO to submit them together with your books of accounts. Upon checking your proof of attendance, you can obtain your BIR Form 2303, or your Certificate of Registration (COR). Fundamentally, this COR will reflect all the returns that you must file and the taxes you are obliged to pay. Your “Ask for a Receipt” Notice (ARN) will be released together with your COR.
STEP #12: Stamping of the COR
The attending officer will ask you to pay for the mandatory registration requirements, which include the P15 Certification fee and the P15 Documentary Stamp. Ask the guard where they sell the Documentary Stamp and proceed there to have your COR stamped. After accomplishing this, the officer will give you a form, which you will attach to the registration certificate later on.
The stamping of the COR marks the end of the daunting BIR registration process. Aside from the registration requirements, you also need a lot of patience. Yes, it can be a bit overwhelming and confusing. But with the sufficient determination to accomplish – and being left with no choice but to do it anyway – we are pretty sure you can manage.
FREQUENTLY ASKED QUESTIONS (FAQs):
How long would the BIR registration process take?
If you are able to secure all the documentary requirements plus the payment for the fees and other costs incurred, it would take you approximately 5-8 working days. It can be longer or shorter depending on how prompt the RDO agents are in processing and the volume of the applicants, as well.
How much would the entire registration process cost?
- Aside from the money you allotted for transportation expenses, other costs incurred are the BIR mandatory registration requirements, which are as follows:
– Registration fee – P500.00
– Books of Account – P200.00
– Doc Stamp – P15.00
– OR Printing – P1,000.00-P1,500.00 (varies depending on its size)
So it would cost you, more or less, P2,215.00.
There you have it – whole BIR registration process explained in 12 steps! Admittedly, most if not all doctors may have difficulty finding the time to get started with business registration. If you’d want to skip this altogether, you can check out TaxumoMD – an all-in tax concierge service tailor-fit for doctors/physicians, that handles everything from business registration, taxation, bookkeeping, PAG-IBIG/ SSS / Phil Health payments and even PRC / License Renewal. In this way, there is no longer a need to go through the challenging BIR registration process.
If you have more questions to ask, feel free to leave a comment below.
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Let TaxumoMD take care of your taxes.
Hi good morning! Great info. I have a question. After getting ur COR at quezon city what if your going to practice at mindanao temporarily. Do i need to transfer my RDO? or am I subject to any penalty?
Hello. What if the BIR is looking for documents that are not among the requirements for doctors clinics / listed in your blog page? Can you incur penalties for these documents that isn’t really needed?
Hello, if I will be practicing in 3 different areas— laspinas, alabang and sucat (all with different rdo)- do I get another TIN for the other areas since I won’t be transferring but instead I will be adding areas? Thanks
Hi Mgeadc, no you will not need another TIN for other areas. In the case of you practicing your profession, only one TIN is needed and is usually registered at the RDO where you’re currently residing in.
Is this applicable to other professions like engineering?
My niece started her residency a month ago and decided to cancel her BIR registration as self employed, what is she going to do?
Hi Nerliza! Your niece may close her BIR registration as a self-employed individual. There are a few requirements she needs to collate before going to her RDO.
HI! I am affiliated with a hospital and will be holding a clinic there for the time being. But I also plan to open my own clinic eventually (in 1 to 2 yrs). Do I need to get DTI and Mayor’s permit now?
Kindly send us an email to email@example.com so we can further discuss your concern. Thank you!
I get a TIN as a requirement for employment as medical officer 3. TIN is only required so I applied for it. But then in BIR, they told me I need also COR, books such as cash disbursement and official receipt and they put it on my registration. What should I do? They told me to be back on specific date with all these requirements and another payment. I am confused.
To clarify, do you intend to be registered as a freelancer? If this is the case, you need to acquire the form 2303/Certificate of Registration from your RDO. Can you send us an email via firstname.lastname@example.org so that we can further discuss this?
Thank you and looking forward to your email!
Good day! Would like to inquire on my particular situation. I graduated 2016, moonlit for 1 year, before going into residency. I have a TIN already. Just finished residency, and am taking up different moonlighting posts again, but in different areas.
1. in Healthway Medical as a cover for another physician in Greenbelt (but they are requiring me to have my own receipts)
2. applying at a private hospital as a house staff physician in alabang (not requiring me to have my receipts)
3. as a general ENT at Cubao (no receipts)
How do I go about registering? I need it more for the number 1 option, because they require that I have my own receipts.
I reside in Malate, my RDO last 2016 – 2017 was at Intramuros.
You need to be registered with BIR as a licensed professional in this case and acquire the form 2303 or Certificate of Registration so that you can have the ATP(Authority to Print) which is a requirement to process your ORs but we’d be happy to further discuss this with you. Kindly send us an email via email@example.com.
Hi! I’m a newly licensed doctor (October 2022 PLE passer). I got my TIN from BIR Intramuros, but currently residing in Pasig City. Also got my PRC license and PTR. I would just like to ask where should I register my BIR receipts? Intramuros or pasig? I also plan on moonlighting in different areas such as QC, pasig city, and taguig. Do I also need to get BIR receipts for those locations?
Your RDO should actually be the place of your residence. You may refer to Revenue Memorandum Order No. 37-2019 by BIR. And yes, you may need to have an OR for the other locations as some hospitals required their doctors to have an OR registered in their area.
Hi. I am currently about to start my private practice in different hospitals in and out of the metro. Prior to this, I was (and actually still am) employed in a private hospital as a house physician (independent contractor) of which I only file witholding tax (2307) since no receipts were required from us in the said hospital. As the hospitals I have acquired stocks from as a practicing physician are about to open, I will be holding clinics in each of these hospitals.
My question is, Do I have to apply for different COR’s for each hospital/clinic or willl my current “generic” COR suffice? My current COR and official receipt is registered to my place of residence (where i don’t hold any clinic) with no particular hospital or institution named, as this was advised to me by BIR a few years bacck as I initially registered. I hope you can shed some light to this. Thank you in advance!
If the Hospital requires you to issue an OR under their registered address, you will be needing to register again so you’ll have ORs specifically for that branch. But if they do not require you to do so, then you may use your current OR 🙂